According to a statement on November 25th, Ripple has partnered with UK-based companies Archax and Abrdn to launch the first tokenized money market fund on the XRP Ledger (XRPL).
As part of the £3.8 billion US Dollar Liquidity Fund (Lux), Abrdn will manage the fund while Ripple has committed to investing $5 million. The global tokenization market for real-world assets (RWAs) is growing rapidly, with McKinsey forecasting it to surpass $16 trillion by 2030.
Tokenized money market funds alone currently hold over $1 billion in assets under management, demonstrating the increasing interest of institutions in blockchain-based solutions.
This move highlights the expanding role of the XRPL in tokenizing RWAs. By utilizing the XRPL, Ripple aims to decrease operational costs and simplify settlement processes.
This development positions the XRPL in competition with other major blockchains such as Ethereum and Avalanche in the fast-growing market of RWA tokenization.
